More than a fifth (22%) of retail investors have cashed in mutual funds to switch their investments to ETFs over the past year, according to research from European white-label ETF platform HANetf.

Hector McNeil, co-CEO and co-Founder of HANetf.

Reflecting the low-costs and broadly diversified exposures typically offered by ETFs, retail investors are primarily using the vehicle for long-term investing, chosen by 58% of survey respondents.

However, more than a third (37%) also indicated that they utilize ETFs on a tactical basis to quickly gain access to investment themes they believe to be attractive. Around two in five (38%) say part of the way they use ETFs is to trade them on a regular basis like individual shares.

HANetf offers an extensive range of thematic ETFs in Europe including funds targeting solar, clean energy, digital infrastructure, smart and distributed energy, uranium miners, and midstream energy investment themes, among others.

Hector McNeil, co-CEO and co-Founder of HANetf, commented: “The growth in interest in ETFs from retail investors is underlined by how people have been funding their investments in the past year with many moving away from mutual funds and investment trusts.

“It is interesting to see that while most retail investors use ETFs as part of their long-term financial planning there are substantial numbers trading ETFs and making use of them to access investment themes which highlights the variety of investment needs ETFs can be used for.”